Time for action: the music industry needs the same CHANGE that Obama brings to America (MIDEM 09 thoughts from 'the Utopian')

Image by gleonhard via Flickr

Everyone that follows my work knows what my message to the music industry has been, for the past 10 years: Change. Embrace technology and empower the User. Make the Artists Partners. Give Permission. Collaborate. Innovate constantly. Get out of your own way. Compensation not Control.

Until a few years ago, to talk about transparency, equality and collaboration was considered treason and people looked at me with deep pity when I suggested a radio-like license for music on the Net. Today, the concept of blanket licensing music on the Net (no, not a tax, but a strong, open ecosystem that generates many new revenue streams) has become a solid contender for a new - and much larger - music ecosystem that is being put together as we speak.

For the last 8 years, trying to control digital music (DRM, CD protection, broadcast flags etc) has brought the music industry a fundamental and detrimental crisis, war (on file-sharers), value destruction, squashed innovations, and lost trust on all sides - artists, consumers, telecoms and brands! Well done, musical Bushs.

WHEN will the industry switch horses like America switched from Bush to Obama, from destruction to innovation, from money-just-for-us to money-for-all, from control to collaboration, from prejudice to openness, from broadcast to conversation...?  Isn't it time that we leave those professional lobbyists and purveyors of costly snake-oils behind, that we hand the wheel to the new guys, the ones that understand what music & a life around music is really like, outside of their bubble and above and beyond their severely limited assumptions?  Isn't time for the lesser-privileged minorities (such as the actual creators, and such as those that are not from the so-called Western world) to step in and catalyze those changes?  Where is the Obama for the music industry?

Here in Cannes, France, at the annual MIDEM music industry conference, we have once again debated and contemplated (and wined and dined and smoked) for the last 5 days. We have noticed some 15-20% less attendance, empty restaurants and much-less-than-usual action in the exhibition halls - the music industry as we knew it is OVER. And good riddance. The organizers tried hard (and did well!) but you have to wonder: what are you (the industry) waiting for? Is it not time to VOTE FOR SERIOUS CHANGE in the music industry, and make that switch to an open, collaborative and mutually fruitful ecosystem? Like... now?

Your thoughts?  Obama Player Link

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Comments

[Jan Simmonds]

A refreshingly 'heart on sleeve' and poignant piece - and totally empathised with.

Having worked in music for over 12 years as a Manager of some 'household names' and also of some who should have been, followed by a migration via parenthood to becoming an online entrepreneur, I have both a subjective and objective view on this. In my humble opinion the music industry's cup could actually be half full...it's all a question of perspective!

Even before the advent of social networking and recent moves towards DRM free and ad-revenue based models, the dumbing down and lack of investment in long term sustainable

artists, not to mention the heavy working of back catalogue to satisfy shareholders has left us with acts like Aretha Franklin, Rolling Stones, Fleetwood Mac, Genesis, etc. as a memory of the good times, instead of as a handful of acts in a continuous line of iconic lasting 'brands'.

The latter is of course at the heart of the matter! An artist is just an artist until a huge amount of exposure and financing establishes them as a 'brand'. Now more than ever the need to deliver brands which can live up to the sheer scale and scope of new delivery platforms will in my opinion, ultimately bring out the best in the real media men and women around the world.

As sure as no teenager will aspire to be famous for the sake of a few thousand a year in CPM based advertising dollars, we as an audience will continue to desire universally accepted and adored brands, which are concomitant with the very best of the best. The majority of the worlds populations, will continue to want to watch TV shows that all their friends are also watching and go to see films with their favourite movie stars in. The same applies to the music that we enjoy and so the idea that this is all sustainable for free is as ludicrous to me as the thought that Google can manage the whole world's advertising or Time Warner or Sony BMG can dominate social networking.

I want a front window to my media consumption and within that front window, I want to access to old and new brands and where appropriate want that to be portable wherever I go. If I hear a song on a celebrity's current favourite playlist within say www.famebook.com as I'm browsing that site, I'll happily pay to have it portable and embellished by imagery and video as say with iTunes or similar and would expect for it to be delivered alongside relevant quality brand advertising. The moment that window is surrounded entirely by Google adwords, it would no longer possess the cache I deserve and would not be my window of choice anymore. The same applies to news and magazine content as well of course.

Google, AOL, Microsoft, Facebook, My Space etc. all need to collectively engage with the media giants who understand better than anyone how to create brands as much as they themselves need to integrate with the former. Create something of value and people will pay for it. Dilute it to random user-generated and asinine content and noone will in the end be paying anything and people will find other places to source their music, news, films etc. The advertisers haven't stopped wanting to pay the right price to reach decent audiences, but until the two world's come together properly, they must be tearing their hair out.

I personally happen to have an iGoogle homepage with about thirty or so feeds and expect Famebook to be alongside Facebook, and further indulging my desire for the top news, TV, blogs, and of course music. My long term loyalty to that window, could be greatly enhanced by allowing me to have an iTunes feed or equivalent, instant ability to hear someone's favourite song, read a description of and perhaps buy their favourite book or watch trailers for movies, and all of course tailored to my own tastes.

This is the new world order for the music industry and traditional media conglomerates. They now have a chance to go back to the roots of what they are are founded on and make sure that content is not only reaching me through old established routes, but is where of course I am now much more likely to buy it. Most importantly, make it brilliant, so I'll pay to keep it coming. Honour the brands they still own and stress to Google et al that owning the ad model around search is fine, but trying to permeate their business model with CPC ads doesn't serve them or the consumer. Together however, they could provide an unprecedented level of audience access which could lead rise to a whole host of globally viral sensations equivalent to The Beatles et al, and which could then underpin future investment into even bigger and better things when the PC and TV are one and the same.

The thought of an A&R guy working at Microsoft is as crazy as my buying a PC from Clive Davis or Motown...I still want to own music, go to gigs, get caught up in the excitement of a breaking act and let advertising tell me what the best mobile or breakfast cereal is. So does everyone I know.

Just hope these guys can work out why all the above, should be stating the obvious!

Sign up for www.famebook.com for pre-launch news and updates!

[Rokamic]

Jan, I have been thinking about that very thing. The legends of music past, those unforgettable singles that echo through time. Where are today's equivalents? Or is it simply hindsight is 20/20. No I don't think so.

And what does that mean?

Gerd, the music industry does need leadership. Or as Seth Godin calls them "a heretic". But I think the true lesson that Barack tries to teach is that we as the people must pull ourselves up by the bootstraps and push forward. Barack will accomplish little if we do not follow. Nay, not follow, but lead in our own right.

And therefore we come to the rub of it. Do we as music creators really want to change the foundation of a century worth of the current regime. I have spoken with many artists on this subject. I can it see in their face. Maybe that is my faltering as a leader.

[Michael]

Incidentally, I wouldn't use this Midem as a yardstick for the state of the industry. Things have been going badly for music for some time already, so we have been leading for once! The credit crunch means that lots of "perhaps" folk stayed away. The same was true of the recent Rotterdam Film Fest and will most likely be true of the Cannes fest and Mipim (property fair) as well.

[audioandroid@gmail.com]

All this over analyzing of what why and wherefore confuses me .. it's quite simple - music is a product which was easy to pirate. When people can get something for free - they don't pay for it.

The established music industry collapses.

I don't really see any solution in your article, as such .. Just more of the 'hehe slow, stupid music industry' ..

The way we monetize music product has changed dramatically, and will continue to do so.

Obviously the music industry of old is finished..
.. it was the first to go .. but so too, soon - print & broadcast..

Creative content is the first to fall .. but within two or three decades .. with the advent of nano-tech .. the only commodity will be information..
.. and that too can be pirated, ripped off - or who knows - perhaps even shared ;)

.. So everything will change and everything will go, the music industry is just the first.